Refinancing: Which Option is for You?
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Even though it may seem like it sometimes, there aren't as many refinance choices as there are borrowers! Call us at 4025970500 and we will match you with the refinance loan program that is ideal for your needs. There are several questions to ask yourself while you review your choices.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? Then your best choice might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of your mortgage, even if interest rates rise. This kind of loan can be particularly a good option if you aren't expecting a move within the next 5 years or so. On the other hand, if you do see yourself moving within several years, an adjustable rate mortgage with a small initial rate might be the best way to reduce your monthly payments. Refinancing may also cause your finance charges to be more over the life of the loan.
Are you hoping to cash out some of your home equity in your refinance? Your home needs renovating; your daughter has been accepted to University and needs tuition; or you have a special family vacation planned. In this case, you'll need to qualify for a loan above the balance remaining on your present mortgage.Then you want to find a loan program for a bigger amount than the remaining balance on your existing mortgage loan. If you've had your existing mortgage loan for a number of years and/or have a high interest mortgage, you may be able to do this without making your monthly payment bigger.
Maybe you want to pull out some of the home equity (cash out) to put toward other debt. If you have a fair amount of equity, taking care of other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) may be able to save you a lot of cash each month.
Building up Equity More Quickly
Are you dreaming of paying your loan off more quickly, while building up your home equity quicker? Then, you'll need to look into refinancing to a short term mortgage loan - for example, a fifteen-year mortgage program. Even though your mortgage payment amount will likely be increased, you will be paying less interest; so your equity amount will rise up faster. On the other hand, if your existing long-term loan has a low balance remaining, and was closed a while ago, you could be able to make the change without paying more each month. To help you understand your options and the multiple benefits of refinancing, please call us at
4025970500. We are here for you.
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